Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets

The escalating threat of global warming has prompted many developed economies to implement carbon emission reduction policies to meet the Paris Agreement's 1.5°C target. However, current global climate pledges remain insufficient, necessitating urgent additional measures for emissions reduction...

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Main Author: Manner, Ida
Other Authors: Jyväskylä University School of Business and Economics, Jyväskylän yliopiston kauppakorkeakoulu, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2024
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/97039
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author Manner, Ida
author2 Jyväskylä University School of Business and Economics Jyväskylän yliopiston kauppakorkeakoulu Jyväskylän yliopisto University of Jyväskylä
author_facet Manner, Ida Jyväskylä University School of Business and Economics Jyväskylän yliopiston kauppakorkeakoulu Jyväskylän yliopisto University of Jyväskylä Manner, Ida Jyväskylä University School of Business and Economics Jyväskylän yliopiston kauppakorkeakoulu Jyväskylän yliopisto University of Jyväskylä
author_sort Manner, Ida
datasource_str_mv jyx
description The escalating threat of global warming has prompted many developed economies to implement carbon emission reduction policies to meet the Paris Agreement's 1.5°C target. However, current global climate pledges remain insufficient, necessitating urgent additional measures for emissions reductions and removals. In response, governments and international organizations are increasingly relying on non-state actors to help bridge this gap, with voluntary carbon offsetting emerging as a key tool for corporations to reduce their greenhouse gas emissions. Initially conceived as a supplementary climate action measure, voluntary carbon offsets have gained popularity as companies seek to appeal to climate-conscious consumers and enhance their environmental performance. Despite their potential, voluntary offsetting initiatives have faced significant criticism due to concerns about transparency, credibility, and the risk of greenwashing. The debate over the credibility of carbon offsetting as a solution to climate change includes concerns that corporations might use offsets to make misleading claims about their environmental impact. As the use of voluntary offsets continues to grow, it is crucial to address these challenges to ensure that offsetting activities genuinely contribute to global climate change mitigation efforts. This Master’s Thesis approaches the topic by conducting a comprehensive review of the existing literature on voluntary carbon offsets, analyzing studies focused on corporate offsetting practices, and evaluating the effectiveness of these practices in achieving real emission reductions. Furthermore, this thesis explores the regulatory frameworks governing voluntary carbon markets and assesses the potential for reforms to enhance transparency and accountability. By synthesizing the findings, the thesis aims to provide insights into how voluntary carbon offsets can be improved to serve as a more credible and effective tool in global climate change mitigation. Ilmaston lämpeneminen on saanut monet kehittyneet taloudet ottamaan käyttöön hiilidioksidipäästöjen vähentämiseen tähtääviä poliittisia toimia Pariisin sopimuksen 1,5°C:n tavoitteen saavuttamiseksi. Nykyiset globaalit ilmastositoumukset ovat kuitenkin riittämättömiä, edellyttäen kiireellisiä lisätoimenpiteitä päästöjen vähentämiseksi. Tämän seurauksena hallitukset ja kansainväliset järjestöt luottavat yhä enemmän ei-valtiollisiin toimijoihin, ja vapaaehtoinen hiilikompensointi on noussut keskeiseksi työkaluksi yritysten kasvihuonekaasupäästöjen vähentämisessä. Vapaaehtoinen hiilikompensaatio on kasvattanut suosiotaan yritysten pyrkiessä vetoamaan ilmastotietoisiin kuluttajiin ja parantamaan ympäristövastuullisuuttaan. Potentiaalistaan huolimatta vapaaehtoiset kompensointihankkeet ovat saaneet osakseen merkittävää kritiikkiä, erityisesti liittyen läpinäkyvyyteen, uskottavuuteen ja viherpesun riskeihin. Keskustelussa hiilikompensoinnin uskottavuudesta ratkaisuna ilmastonmuutokseen on noussut huolenaiheita siitä, että yritykset saattavat käyttää kompensaatioita harhaanjohtavien väitteiden esittämiseen ympäristövaikutuksistaan. Vapaaehtoisen kompensaation lisääntyessä on ratkaisevan tärkeää puuttua näihin haasteisiin, jotta kompensointitoimet todella edistävät globaaleja pyrkimyksiä ilmastonmuutoksen hillintään. Tämä pro gradu -tutkielma lähestyy aihetta tekemällä kattavan katsauksen olemassa olevaan kirjallisuuteen vapaaehtoisesta hiilikompensaatiosta, analysoimalla yritysten kompensointikäytäntöihin keskittyviä tutkimuksia sekä arvioimalla näiden käytäntöjen tehokkuutta todellisten päästövähennysten saavuttamisessa. Lisäksi tutkielmassa tarkastellaan vapaaehtoisten hiilimarkkinoiden sääntelykehyksiä ja arvioidaan mahdollisuuksia uudistuksiin läpinäkyvyyden ja vastuullisuuden parantamiseksi. Näiden löydösten synteesin avulla tutkielma pyrkii tarjoamaan näkemyksiä siitä, miten vapaaehtoisia kompensointikäytäntöjä voidaan kehittää, jotta ne toimisivat uskottavampana ja tehokkaampana työkaluna ilmastonmuutoksen vastaisessa taistelussa.
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spellingShingle Manner, Ida Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets Master's Degree Programme in Corporate Environmental Management
title Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
title_full Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
title_fullStr Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
title_full_unstemmed Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
title_short Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
title_sort voluntary carbon markets a review on efficacy challenges and impacts on corporate emissions reductions targets
title_txtP Voluntary Carbon Markets: A Review on Efficacy, Challenges and Impacts on Corporate Emissions Reductions Targets
topic Master's Degree Programme in Corporate Environmental Management
topic_facet Master's Degree Programme in Corporate Environmental Management
url https://jyx.jyu.fi/handle/123456789/97039 http://www.urn.fi/URN:NBN:fi:jyu-202409115919
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